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Buterin’s Node Vision Fuels Ethereum’s Rally as Investment Products Pull $785M
- Ethereum is gaining momentum with crypto investment products seeing US$785 million in net inflows last week, driven by ETH’s 4.2% rally and pushing the price above US$2.5k.
- Ethereum has received US$757 million in year-to-date inflows, making it the network with the second-most flows behind Bitcoin but ahead of XRP according to CoinShares data.
- The positive sentiment comes after improved outlook around the Pectra upgrade and the appointment of a new Ethereum Foundation co-executive director following weeks of leadership uncertainty.
- Vitalik Buterin has contributed to the network improvement discussion with a recent blog post arguing for solutions that preserve node accessibility while scaling, including short-term fixes like trimming old history and a new “partially stateless” node design.
A recent CoinShares report highlighted that Ethereum (ETH) is gaining momentum and that investor sentiment may be recovering.
Crypto investment products – such as exchange-traded funds (ETFs) from asset managers BlackRock, ProShares, Bitwise, Fidelity, Grayscale and 21Shares – recorded US$785 million (AU$1.2 billion) in net inflows last week – driven by Ethereum’s 4.2 per cent rally over the past week.
ETH has reached back above the US$2.5k mark today, gaining 5.5 per cent in the past 24 hours and is currently trading at US$2,557 (AU$3,968).
The second-largest cryptocurrency has attracted US$757 million (AU$1.17 billion) in year-to-date (YTD) inflows, placing it second only to Bitcoin and ahead of XRP.
Related: Safe Enough To Store Trillions: Ethereum’s New Plan To Boost Security and Interest
CoinShares Head of Research James Butterfill wrote in a note to investors that the recent five-week streak of inflows has reset the clock, “surpassing the previous peak of US$7.2bn recorded in early February”.
It also fully recovers the near US$7bn of outflows experienced during the February–March price correction.
James Butterfill, CoinShares Head of Research Ethereum’s strong performance follows improved sentiment around the Pectra upgrade and a new appointment of a co-executive director of the Ethereum Foundation – after weeks of leadership rumours.
Buterin Proposes Changes to the Network
Meanwhile, on the technical side, Ethereum co-founder Vitalik Buterin weighed in on 19 May with a blog post debating network improvements.
In it, Buterin argues that simply making Ethereum blocks bigger or relying on fancy cryptography isn’t enough – ordinary people still need to run their own full nodes to read and verify the chain in a private, censorship-resistant way.
To keep node-running easy even if the network scales massively, he proposes short-term fixes like trimming old history (EIP-4444), spreading archival data among many peers, and introducing a new “partially stateless” node design that only stores and updates the user’s own slice of state.
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This lets anyone maintain a personal node without huge hardware demands, preserving trustlessness, privacy and choice.
Read also: Moody’s Downgrades US, Crypto Reacts Mostly Positive as BTC Reaches $106k
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
